The Iraqi media regulator said it was revoking Reuters' licence for three months and handing them a fine of 25 million dinars (S$29,738) for what it said was the agency's violation of the rules of media broadcasting.
In a letter to Reuters, the Communications and Media Commission (CMC) said it had taken the action "because this matter is taking place during current circumstances which have serious repercussions on societal health and safety".
In a statement by the news agency, the management said it regretted the Iraqi authorities' decision and that it stood by the story, which it said was based on multiple, well-placed medical and political sources, and fully represented the position of the Iraqi health ministry.
"We are seeking to resolve the matter and are working to ensure we continue to deliver trusted news about Iraq," the news agency said in a statement.
The Reuters report, published on April 2, cited three doctors involved in the testing process, a health ministry official and a senior political official as saying Iraq had thousands of confirmed COVID-19 cases, many times more than the 772 it had publicly reported at that time.
The agency later updated the report on April 2 to include a denial from a health ministry spokesman, sent by text message, who dismissed the sources' assertions about the spread of the disease, describing them as "incorrect information".
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